Sunday, July 3, 2022

Scandi FX Volatility Monitor – Sell 1M EUR/SEK Call

-


Implied volatility increased substantially in the Scandi FX sphere towards the end of last week after broke above 10.60.

Given the current relatively constructive risk environment (globally), we see a case for renewed downward pressure on implied vol. In this environment, both NOK and SEK should find some support vis-à-vis EUR and USD. Moreover, note that our economists are more bullish than consensus on the Swedish Q4 GDP release (due on Thursday). See Reading the Markets Sweden , 22 February 2019, for details. If we are right, it could curb EUR/SEK upside risks in the short term.

Hence, given the current spot and vol. levels, we see value in selling 1M EUR/SEK calls (we recommend selling 20-35 delta calls).

Sell 1M EURSEK Call

High-Low Gamma Value
Important dates
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

FOLLOW US

0FansLike
3,375FollowersFollow
0SubscribersSubscribe
spot_img

Related Stories